Home Insurance Frequently Asked Questions
- What does homeowners insurance cover?
- How do I know how much coverage I need for my home?
- I'm just starting out in my first home. How much homeowners insurance do I need?
- Doesn't my condo association carry enough insurance to take care of me?
- How do I decide which items to separately schedule on my home insurance policy?
- I don't live in a problematic flood zone. Why would I need flood insurance?
- My landlord has insurance, so why do I need renters insurance?
- Why do I need Personal Liability coverage?
- How do I lower my homeowners insurance premium?
- As a college student, isn't my personal property covered under my parents' homeowners insurance?
1. What does homeowners insurance cover?
Homeowners insurance typically covers you for:
- the structure of your dwelling
- other structures on your property
- your personal belongings
- personal liability
The National General Insurance Homeowners Program* protects you against perils like fire, lightning, wind, explosion, theft, vandalism and a host of other specific causes of damage or loss.
It also provides Loss of Use Coverage, which helps pay the additional expenses incurred if your home is damaged or destroyed in a covered loss and you have to live elsewhere temporarily.
Call 1-888-745-2507 for more information.
2. How do I know how much coverage I need for my home?
The type and amount of coverage you need depends upon:
- the type of home you live in
- its value
- the value of your personal property
- whether or not you have a mortgage on your property
- your personal finances
Since your family situation changes over the years as you remodel and increase the value of your home, the right amount of coverage for you will change over time. So be sure to evaluate your coverage needs on a regular basis.
And with the National General Insurance Homeowners Program, we help by providing our Home Rebuild Cost Analysis. It may sound like a mouthful, but it can make all the difference in the event of a major covered loss to your home. When you call for a quote, we calcualate the rebuild cost of your home, based on the information you provide us and current costs in your area.
3. I'm just starting out in my first home. How much homeowners insurance do I need?
Part of the process of securing a mortgage on a first home is purchasing homeowners insurance. Because the bank has a financial interest in your home, they need to be sure that their investment is protected if a loss occurs.
As a new homeowner, you also need to be sure that your investment is protected, including your home's structure and your personal belongings. Of course, you should also protect your financial assets in the event that someone is accidentally injured on your property. You don't want to find yourself responsible for costly medical bills. Personal liability coverage protects your assets in the event of financial liability or lawsuit.
Not sure how much your home is worth? Your homeowners insurance agent can help you with that, and your financing institution will insist on at least a minimal level of insurance coverage.
And if you want to know more, call 1-888-745-2507.
4. Doesn't my condo association carry enough insurance to take care of me?
When you live in a condo or co-op apartment, you enjoy many of the advantages of home ownership, but you don't actually own the building that you live in. As a result, home insurance for condo and co-op owners is different from homeowners insurance. A specialized form of homeowners insurance, called HO-6, addresses the needs of condo owners.
There is a master policy held by the Condo Association or Co-op Board that generally covers the building and its common areas in case of covered losses. However, as a condo owner, you need insurance to protect your personal property from fire, lightning, explosion, storms, vandalism and theft and more. These are just a few of the named perils (specific risks) typically covered by an HO-6 policy.
These coverages protect your personal belongings in the event of loss.
As a condo owner, you also need to insure improvements you may have made to the structure of your unit, like private entry ways, garages, additions, balconies, and specialized fixtures. If these were not part of the original structure of your unit, then these improvements should be covered by your condo insurance policy to properly protect your investment.
Note that master policies differ from condo association to condo association. Be sure to know exactly what is covered by the master policy, and make sure that your HO-6 coverage takes care of the rest.
And should someone be injured on your property, you may be held liable and be financially responsible for medical expenses, legal expenses or property damage involving that third party. Personal liability coverage is typically included in an HO-6 policy to cover this sort of accident or loss.
5. How do I decide which items to separately schedule on my home insurance policy?
Most home insurance policies cover personal belongings up to a specified dollar limit. Specific valuables that are individually more valuable may be separately scheduled on your homeowners, condo or renters insurance policy. Scheduled items include jewelry, electronics, collectibles of various types, and fine art.
If you have any questions call 1-888-745-2507.
6. I don't live in a problematic flood zone. Why would I need flood insurance?
Unless you live on particularly high ground, you may want to consider flood insurance. It only takes one hurricane, or extended period of extreme weather that causes flood damage to your home and property, to make you realize how devastating the effects of water damage can be.
And if you do live in a flood zone that poses risks periodically, you may be required to purchase flood insurance before you can acquire your mortgage
The National General Insurance Homeowners Program* provides Flood Insurance in partnership with the National Flood Insurance Program. It generally protects both the structure of your home and its contents.
7. My landlord has insurance, so why do I need renters insurance?
Your landlord may have insurance to cover your building, but what if there's damage to your property from fire or storms? Your landlord isn't responsible for that. You are. And if repairs require you to move out, do you have the money to pay for another place to stay?
Renters insurance covers you against specific types of losses – named perils such as damage from lightning, fire, storms, vandalism or theft – so that you can replace or repair your property in the event of an incident. And it even protects belongings that may be in your car!
If your apartment is uninhabitable for a period of time, Renters Insurance provided through the National General Insurance Homeowners Program* provides you the funds to live in a comparable apartment while yours is being repaired.
Think you don't have enough personal property to justify the cost of renters insurance? You may be surprised. Your sporting goods, electronics, computers, clothes and furnishings may be worth more than you realize.
And protect yourself for a surprisingly affordable monthly rate!
Call 1-888-745-2507 today for a free no-obligation quote.
8. Why do I need Personal Liability coverage?
Whether you live in a house, a condo or an apartment, if someone is hurt or suffers a loss in your home you could be found personally liable. In other words, you're financially responsible for the expenses that may result.
- It may be as simple as someone slipping in your home, in the entryway or on the stairs. Even a broken leg can cost thousands of dollars in medical expenses - and potentially more if lost wages are involved.
- Have a dog? Dog bites occur all too often, and you will be responsible for pain and suffering, medical expenses, and potentially lost wages.
- If the person injured decides to sue, can you cover the legal expenses? Do you really want to put your assets at risk?
Personal liability coverage is a standard part of most home insurance policies. A few extra dollars can go a long way to preventing financial disaster down the road.
9. How do I lower my homeowners insurance premium?
The National General Insurance Homeowners Program* rewards customers who pay attention to safety and security and lower their risk of injury, accident, theft or other covered losses.
Here are just a few of the things that can lower your home insurance premiums:
- Safer building materials
- Security systems
- Smoke alarms
- Sprinkler systems
- Deadbolt locks
10. As a college student, isn't my personal property covered under my parents' homeowners insurance?
Don't assume that your personal belongings in a college dormitory, fraternity/sorority house, or apartment are automatically covered by your parents' homeowners insurance policy. Be sure to check the provisions of that policy, but generally speaking, you are not adequately covered unless you have coverage for your personal possessions.
- Studies show students in dorms, fraternity/sorority houses, and college apartments are at risk, particularly if they own expensive electronics or sporting goods.
- College students may think they are covered by their parents' homeowners policies, but that's generally not true. If covered, they are only partially covered.
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